Navistar International Corp.’s Chairman, President and CEO Daniel C. Ustian has retired from the Lisl, Ill.-based company, effective immediately.
According to a news release, the Navistar board has appointed Lewis B. Campbell, former chairman, president, and CEO of Textron Inc., as executive chairman and interim CEO.
The truck and engine maker also announced that it has promoted Troy A. Clarke, currently president of Truck and Engine operations at Navistar, to the position of president and COO of Navistar.
“Lewis Campbell is a high-caliber executive who brings to Navistar deep and broad strategic, technical and operational skills and a proven track record of leadership with global industrial companies – including 24 years of experience in product design, engineering and manufacturing in General Motors’ automotive, trucking and component businesses and seventeen years in senior leadership positions at Textron including more than 10 years as chairman, president and CEO. We are very pleased to have him join the team,” said Michael N. Hammes, Navistar’s independent lead director.
Regarding Ustian’s retirement, Hammes noted, “We appreciate Dan’s many contributions and accomplishments during his 37-year career at Navistar. Under his leadership, Navistar’s revenue grew from approximately $7.7 billion to approximately $14 billion as the company significantly expanded its global reach and diversified its product portfolio, including the addition of Navistar’s military business. We thank Dan for his dedicated service and wish him all the best in the future.”
Navistar, parent to Monaco RV LLC, has been under fire in the wake of its inability to meet deadlines for new emission standards and a second quarter loss of $172 million. The company is also the target of a formal U.S. Securities and Exchange Commission (SEC) inquiry into accounting and disclosure matters.
Navistar Inc. would acquire certain RV-related assets of Monaco Coach Corp. and assume certain liabilities associated with that business under a non-binding letter of intent signed this week, Monaco announced late today (March 26).
Navistar, with nearly $15 billion in annual sales, is a leading global manufacturer of commercial vehicles, military vehicles, diesel engines and related parts and services.
The letter of intent contemplates that Monaco and Navistar will work to sign a definitive asset purchase agreement during early April, according to the Monaco release. Following the completion of due diligence and the bankruptcy court approval process, including the auction process, the parties intend to close the transaction shortly after obtaining the entry of a final non-appealable sale order of the bankruptcy court pursuant to Section 363 of Title 11, authorizing the transfer of purchased assets to Navistar.
Monaco continues to work with other interested parties regarding the acquisition of its Motorhome Resorts segment and other assets held for sale.
“We look forward to working with Navistar to complete this transaction and ultimately become a part of one of the nation’s most respected companies,” said Kay Toolson, Monaco chairman and CEO. “This is a great opportunity for our employees, dealers, suppliers and the communities in which we operate. We look forward to continuing the Monaco Coach brands and our legacy of producing quality and innovative recreational vehicles for our owners.”
Headquartered in Coburg, Ore., Monaco has manufacturing facilities in Oregon and Indiana and offers a variety of RVs, from entry-level priced towables to custom-made luxury models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie and R-Vision brand names.
“If we are able to reach agreement, the purchase of certain Monaco assets would fit our strategy of leveraging our assets to expand our diesel business, serve the end customer and would also complement our Workhorse custom chassis business,” said Jack Allen, president of Navistar’s North American truck group. “Any asset purchase would fall within our current capital expenditure program for fiscal 2009.”
The proposed purchase is for Monaco assets, not its stock.
Proceeds of the purchase will go toward Monaco’s secured creditors – its two lenders, Bank of America and Abelco LLC.
Based on information Monaco provided in bankruptcy filings earlier this week, the $50 million amount does not appear to be sufficient to meet any of the company’s unsecured creditors. The filing estimated that the company had between 25,000 and 50,000 creditors.
Daniel C. Ustian, Navistar chairman, president and CEO, sits on the Monaco board. Navistar and Monaco are joint owners of the Monaco chassis plant in Elkhart, Ind., with Navistar owning a majority share.